ALB#014 – Do you want fries with that?
Grab the popcorn, and put your phone onto “silent” – we’re off to the cinema! Well, actually, John and Jason have been to the cinema, and are back with their take on one of Hollywood’s latest blockbusters.
No, they haven’t been watching 50 shades of Grey.
No, they haven’t given up talking about Marketing and small businesses, to go into film reviews.
What they have done is taken some of the greatest lessons that YOU as a small business owner can take away from “The Founder”, a movie all about the story of McDonalds.
From humble beginnings as a single burger shack in California to the behemoth that we know today, The Founder chronicles Ray Kroc, and his transformation of a tiny owner-operated business into a corporate giant, and the world’s largest land-owner.
We’ll talk once again about the importance of aligning your goals with your desire (and ensuring that your business partner’s desires are the same as yours too!), and show why it’s crucial to know your numbers.
What business are McDonalds in? The answer might surprise you (unless you’ve read Rich Dad, Poor Dad, or seen the trailer!).
Ray Kroc didn’t take “no” for an answer, and we’ll show why neither should you.
We’ll talk about the importance of being disruptive, optimisation of your systems & processes, and tell you how McDonalds ensured consistency of their product, and their brand, even when expanding to 65,000 restaurants around the world.
And you won’t want to miss John’s biggest “take away” (even bigger than a Big Mac with large fries and a jumbo coke!) that EVERY small business owner needs to implement in their business if they don’t want to suffer the same fate as the McDonalds brothers…
If you can call walking away with a cheque for $3.6 million suffering…
Oh bugger, I’ve just given away the ending.
That’s why we don’t do film reviews…
Below is the transcription of our podcast for you to read through if you prefer:
John: Hey, hey, everybody and welcome to episode 14 of the Big Idea podcast. My name is John. Here, as always, with Jason.
Jason: Hiya, John.
John: We are here to provide you with some simple, actionable bits that you can take away, for your business, to help your business grow. Today we are doing a movie review, aren’t we?
John: No. We’re not, but we have been to the movies. We’ve been to the cinema and we say a movie called The Founder.
Jason: It’s really good to take a morning out of the day, really, to work on the business by watching a film.
John: It was. It really did feel like slacking. We were the only ones in the cinema, thankfully. There was …
Jason: We were the only slackers.
John: We were the only slackers, but it just seemed … It did seem strange, to think, “Well, actually, I should be working now, but what I’m going to do is I’m going to go and spend two hours watching a film.” You think, “Well, yeah. That’s slacking. It’s not actually working towards my goals, or anything like that.” but, actually, having seen the trailer and I think when I spoke to you, because you had actually already seen the film over the weekend, we knew that this was a film that we could actually learn something from and there were actually a lot of business lessons in there. Have we mentioned what the film was, yet?
Jason: We haven’t even mentioned it yet.
John: Good. Shall we see how far we can go without mentioning it?
Jason: I don’t think you’re going to go too far.
John: Okay, then. The film was The Founder. This is the story of McDonald’s. Basically, it’s McDonald’s as we know it today and the story of Ray Kroc, who is credited as being the founder of McDonald’s and I think, we’ll have a little conversation later on in the programme, as to whether he actually is the founder of McDonald’s.
Jason: He’s definitely self appointed founder.
John: Yes, undoubtedly. A few caveats before we begin, number one, I have to say, spoilers. Spoiler alert. Spoiler alert. We are going to talk about the film. We’re going to talk about what happens. If you’re not familiar with the McDonald’s story and you want to watch the film first, because you don’t want us to spoil it for you, please do turn off now and go watch the film and then come back, when you’ve watched it.
Alternatively, we are going to give stuff away and a lot of what we’re going to talk about today is based on the McDonald’s story, but we have just watched a Hollywood version of the McDonald’s story, so a lot of what we’re going to talk about, particularly if we’re talking about things from the film, may not have happened quite the way that it was portrayed in the movie.
With that little caveat out of the way, let’s take you to the main, what I think is the main, story from the film, which is the fight between the original founding McDonald brothers and Ray Kroc. In the beginning of the film their goals seem aligned, don’t they?
Jason: They do, yeah. Absolutely.
John: Ray kind of, takes the McDonald’s brothers vision and I would say runs with it, more runs away with it, doesn’t he?
Jason: Definitely runs away with it, yes. Something about blowing it up I think, was the …
John: Yeah. I think the lesson to learn here is to always make sure that your goal’s are aligned with your desire, because Ray’s goals were aligned with Ray’s desires and the McDonald’s brothers goals were aligned with their desires and the two didn’t mix. There’s a common theme running throughout the film, whereby Ray will have an idea to normally make more money, which involves normally sacrificing some quality, or some ethos, something that Dick McDonald would say, “No. That’s not what we stand for. That’s totally against what we believe in.”
Jason: There’s quite a few options like that, really, where Ray could make a quick buck, or could see a better partnership. I think Coca-Cola was certainly one of those, wasn’t it? Where he just wants to brand the menu with Coca-Cola, have a kind of, sponsor on the menu and then, there’s just no way that that was going to happen.
John: There was a common theme of Ray … The McDonald’s brothers would be in a restaurant, the phone would ring and it would always be Ray. The only person that ever used this phone was Ray Kroc, because the phone would ring and then they’d give this little look, over to the phone, as though, “It’s him again.” They didn’t even have caller ID in the ’50s, but, if they had, they knew it was him and it would be, “Hi. Dick, I’ve got a brilliant idea. Ah, I’ve got a fantastic idea. We’re going to put powdered milk into the milkshakes.” “No. No, Ray. You’re not.”
It’s kind of, what they wanted was to get a little bit bigger. They had this nice little burger joint.
Jason: I think we could maybe, without giving away too much, take them back a little bit further and kind of, a little bit about the McDonald’s brothers. That would kind of help, really, because they did have the vision and they had the ideas and they had some of what Ray was thinking, in the beginning, certainly.
They kind of, came out of a time with the Great Depression and things like that. They were entrepreneurs. They had business ideas that weren’t just about going and serving burgers. I think it was a movie cinema, or something. Movie theatre, because that was in the height of the ’20s and everything was kind of going that way. Then, the depression came along and everybody couldn’t afford to go the theatre, so that kind of put paid to that business, wasn’t it? They had to then, develop and I think we’re into pivoting, I think. Is that what we move into?
John: I don’t think they called it a pivot, back then. They weren’t in the sort of, text space now, where everyone pivots instead of makes mistakes. Effectively, they went into a few business and either the market changed, or the business model was wrong and yeah, they pivoted and said, “Well, actually, that was wrong. We were wrong.” Ray did the same. He was selling things out of the boot out of his car, for years and he was a struggling salesman, travelling salesman, wasn’t he?
Jason: He was, yeah.
John: As you said, when you’ve got something, an opportunity, as big as McDonald’s, you can afford to be wrong 20 times, as long as the one time you’re right is when it’s something the size of McDonald’s, as is now. Again, I use the word McDonald’s as in the brand we now know, not necessarily the brand that existed back in the ’50s. Yeah, it was a line he said in it, “I’ve only got to be right once.” because he’d built up a reputation as loser, as someone who always had these crackpot ideas and always had something new to sell.
I mean, there was a scene where he’s sat down with some of his golf buddies.
Jason: In the country club, yeah.
John: Country club moment. They’re dismissing him, “Here we go. It’s Ray’s silly ideas, again.” and his wife sort of says, “No. Actually, you need to listen to this, because this isn’t one of his usual crackpot ideas. He’s actually got something here.” Yeah. You’ve only got to be right once. You’ve got to know your numbers and this is where Ray fell down, certainly in the early days. He signed this contract to take on the McDonald’s franchise. McDonald’s brothers had one burger joint and they’d tried opening a few others, didn’t work. As far as they were concerned, tried that, didn’t work. Ray saw that it really would work.
Jason: He saw the vision, didn’t he? He saw what … This one restaurant that they had, it was operating almost a military kind of operation, really. They’d kind of, put an awful lot of planning into it, honing it down, taking lessons from people like Henry Ford and creating the motor assembly plant and that’s kind of how they went about creating the burgers. What they needed to do was create a burger, which was the same for every single person who came along to the counter and they found the best way of doing that. They optimised it.
They even went to a tennis court and mapped it out, didn’t they? Had all the staff walking around the tennis court, as if they were making burgers, just to get it right before they actually put in the kitchen that they then fitted. He saw this. The systems and the processes, which the McDonald brothers put together, to make this thing work. Military operation really.
As I say, his first experience was turning up at the window and there was a long queue of people and the woman in front’s, “Don’t worry. It’s not going to be too long.” It literally, it wasn’t. He was there and he gave his order, turned away a minute, turned back and there it was waiting for him. He was kind of, completely blown out the water. He was like, “Well. It can’t be mine, because I’ve only just placed that order.” Am I giving away too much of the film?
Jason: That’s good.
John: [inaudible 00:08:57].
Jason: He’s kind of like, “I’ve got this bag now. Now what do I do? Where do I sit? What do I … How do I eat? Where’s my plate?” Where’s all of these things? “No. Just eat it out of the bag.” “Well, where do I eat?” “Go and sit on the bench, or in your office, or in the car, or wherever you want to go. It doesn’t make any difference, just eat it.” It’s convenient and easy and quick. You had this whole … This whole thing was kind of, as I say, military operation. It was like bing, bing, bing. There you go. You’ve got it. Nice and cheap. Nice and easy. Nice and quick, which appealed to lots of people, didn’t it?
John: It did. Going back to know your numbers. He had this contract, which was … Was it 1.4% of every burger sold, he would get? Something like that.
Jason: One of them got 1.4 and the other one got 1.9. I can’t remember which way round it was. I think he got the most.
John: Anyway, he happily signed this contract, which effectively lost him money. He went out there thinking, “This is a great business. If I scale it up, I’ll make loads of money.” He went out there and scaled it up and then, eventually the bankers come round and say, “You’re losing money. For every burger you sell you’re losing money, because you’ve got this contract here.” “What do you mean?” Literally, because he hadn’t even looked at the numbers. He had no understanding, whatsoever, of how much does it cost to open a restaurant? How much does it cost to staff it? What are my overheads? What are my margins? Actually, his margins were fixed, because he couldn’t charge what he wanted for a burger, he had to charge what 99 cents.
Jason: No, no, no. Get this. I think you kind of missed out, 35 cents for a McDonald’s meal. 35 cents. Can anybody imagine how America got the size they did with 35 cents for a drink, burgers and fries? 35 cents. Sorry.
John: Yeah. He got to the point, whereby he was actually failing by succeeding. The more he succeeded, the more McDonald’s became a success, the more branches he opened, the more burgers they sold, the less money he had. It was purely because he didn’t understand numbers. Eventually, he meets up with … It was a banker, wasn’t it?
Jason: Competitor, I think, in the ice cream business. Harry Sonneborn? Something like that?
John: B.J. Novak’s character.
Jason: Okay. Yeah.
John: Came from the American Office. He uttered the famous line, which I was aware of via Rich Dad Poor Dad, which was, “What business are you in?”
Jason: We sell burgers, don’t we?
John: There’s a famous story, again it’s from Rich dad Poor Dad, where Ray Kroc’s giving a talk at Harvard Business School and he says to the class, I think it’s a lunchtime, they break out for a session and he says, “So guys, what business am I in?” There’s a little nervous laughter. “No, no. Really, guys, what business am in?” Eventually, someone brave pipes up and says, “Come on, Ray. Everyone knows you’re in the hamburger business.” He says, “No. No, I’m not. I’m in the real estate business.” That was the lesson that was dished out, as he stood on this empty piece of land, holding the earth in his hand, that actually, Ray Kroc was not going to get rich selling burgers. Ray Kroc was going to get rich by owning the land that was paid for by selling burgers.
I liken that to us nowadays. What business are we in? We’re not in the sports betting business. We’re not in the internet marketing business. We’re not even in the property business. We are in the investment business. Everything we do now is geared towards building, creating and sweating assets that we own. Some of which is online marketing, some of which is sports betting, some of which is property, but predominantly we are investors, that is the business we’re in. To the outside world we’re probably not in that business, but up here, in our heads, that’s where our head space needs to be.
That’s where Ray Kroc’s was. Everyone thought he was selling burgers, he wasn’t selling burgers. He was selling real estate, or he was buying real estate, which he was getting his franchisees to pay for and cutting out the McDonald’s brothers along the way.
Jason: 88 billion pounds worth of property they have, real estate. It’s quite a lot, very good.
John: On the high street, in just about every town, every bit of prime real estate has a McDonald’s near by and the McDonald’s Corporation owes the land that that stands on. They control the land. Another lesson to take out of it is not to take no for an answer. That’s a theme that occurred throughout the movie.
We start off and Ray’s getting lots of nos, isn’t he? He’s going door to door, trying to sell his milkshake machine, was it?
Jason: Multi-spindled milkshake machine. To the drive ins. The drive-ins, in the ’50s, they were an important part of America. They kind of, like, were built … There was a drive-in everywhere. Every town had a drive-in, but it was a flawed business model, really, because the customers were never going to be happy with how that worked out. One of his things was, yeah, this multi-spindled milkshake machine. Actually, why make one and make the customer wait, when you can make six?
He was very much about trying to sell the idea that, actually, put that in first and the customers will follow. I think the line was something about chicken and egg and egg and chicken kind of, thing. It’s, actually, have the supply and the demand will follow is where he was coming from and he was trying to sell this in a story and yeah, kept getting nos, because people weren’t thinking ahead.
John: I mean, there’s a cut there, where it’s just like, slam a door on his pitch and then someone else, slam on that door. Literally, pack it up, put it in his thing. Get back to his hotel room, have a shot of his whiskey and he’s like, “Oh, no. Right. Off for another day of nos.” It’s like, okay, yeah, but that was obviously the grounding of, “I’m not going to take no for an answer. I’m going to keep going.” and persistence was this word that kept coming up. I mean, he was listening to a personal development, vinyl record, wasn’t he?
John: In the [inaudible 00:14:57], which talked about persistence and clearly that’s a trait that I think he certainly saw. I mean, we look at the milkshake situation, whereby he discovers that the reason that they’re failing and they’re spending so much money is the huge refrigeration costs of storing ice cream and milk, for the milkshakes. Then, someone introduces him to powdered milkshakes, just add water and you’ve got something that tastes like a milkshake. Light bulb goes on. Says, “That’s, that’s phenomenal. We can go from a business that is actually losing money, to generating significant profits, just by making this one little change.” He gets on the phone to Dick McDonald, who says, “No.”
Jason: No. No. No. Fresh only. That’s it.
John: Many people would have said, “Okay. The founder, the original McDonald brothers have said, “No.” They don’t want to do that with their brand.”
Jason: I have a contract which ties me into not doing that, because they had complete control over the products, don’t they?
John: Yeah. He kind of, said, “Actually, screw it. I’m going to do this anyway.” That was very much a theme of the film was, I’m going to do it anyway.
Jason: Find a way, that’s it.
John: Yeah. Again, you mentioned the contract. It says here in this contract that you cannot do this and there’s a scene where he’s just talking to his lawyer and says, “So? Just make it go away. I don’t care what you have to do, just make that go away.” It’s like, literally, “I am not going to accept this legally binding contract. No. I don’t care. Not going to happen.”
Jason: I think a little caveat is that, maybe most people wouldn’t get away with that, because contracts, I guess, these days are a little bit more tied down by suits. Yeah. One of my little things would be, any contracts you really need to have a look at the finer points and [crosstalk 00:16:50].
John: Even the most iron clad contract can be amended, can be changed. It is just a case of, how much money’s that going to cost you and what are you going to have to give up? You’re going to have to renegotiate that contract. Yeah. He just refused to say … to take no for an answer. Even went out and found his second wife, she was married to someone else that he knew from business, but did he let that stop him? No.
Jason: No. Another little subtle thing, which I kind of took, we were talking about the chicken and egg and the supply and demand and things. I actually think that the McDonald’s brothers found that out in advance, because they created a supply and then the demand follows. I kind of, think about that these days, as well, because I think, locally here there’s new things that are appearing, high street things in other places, so … I’m thinking of Costa, actually. We had a Costa arrive on a retail park, which wouldn’t [crosstalk 00:17:42].
John: I don’t think Costa’s new.
Jason: No, not new, but it just kind of appeared and actually why … Before that there was just Coffee Shack, they were selling burgers and things. There wasn’t really any reason there to go and have coffee, but I was in there on Sunday morning and it was packed. 10 o’clock on a Sunday morning, this Costa was packed. They created the supply and the demand kind of followed. Again, that was kind of … I think it just kind of, struck me that and I thought, actually, McDonald’s themselves, the brothers, with the creation of their thing, tt wasn’t a hot dog stand, which was their idea, which was the idea they stole kind of thing, to start burgers. They actually created that supply first.
John: Yeah. No. [inaudible 00:18:17].
Jason: That was a little … I was thinking about Ray Kroc’s supply and demand argument with the-
John: Chicken and eggs.
Jason: Milkshake machines. Yep. Sorry.
John: They were disruptive. The original McDonald’s brothers were very disruptive, weren’t they? As you said, they had this, as you say, military operation really. I mean, they put their foot down. They optimised their entire set up, didn’t they? They originally, when they first launched, they had a 27 item menu. I think, I can’t remember the exact number, but it was something like 87% of the items sold, from that 27 item menu were burger fries and a soft drink. It’s like, well, actually, if that’s what most people are ordering, why don’t we completely streamline that and just sell those three items?
Literally, they cooked the chips perfectly, every time, by analysing, well, what if we do it at 220 degrees, for 3.7 minutes? We could do that, or we could do it at 240 degrees, for 4 minutes. Okay. Literally, they optimised how long, how thick the chips had to be cut. How long they had to be cooked in the oil, at what temperature? This device which measured out the amounts of the pickle and the onion and the mustard.
Jason: Two pickles, a squirt of each of the things, wasn’t it?
John: Everything was measured and it was just completely optimised to be quick and convenient. I think, you mentioned before about Gordon Ramsey, with his Kitchen Nightmares, does a similar things, every time he goes in.
Jason: Absolutely, yeah. I don’t think I’ve watched an episode of Kitchen Nightmares without him going in and saying, “Why’ve you got a hundred and fifty things on your menu? What is this? It’s like a book that I’m reading to choose from.” It’s like, no wonder you’re kind of, failing, because there’s no way you can have a table of 10 people coming in and everyone choosing something separately, for you to cook 10 different dishes and get them out at the same time. Thinking about some of the top eateries now, they have a set menu. You go along on a day and here, you can choose one, or two mains and one, or two starters and one, or two puddings and that’s as much as it is and it’s …
John: Most places now, or decent places, do you want the steak dish, the fish dish, the salad, the veggie dish, or the pasta? Because, that’s all we’ve got.
Jason: Yeah. Do your one thing and do it well.
John: We went to a restaurant in London, Christmas before last, didn’t we?
John: No, no. Flat Iron Steak.
Jason: Flat Iron Steak. Okay, yeah.
John: There was literally only one item on the menu, wasn’t it? It was, how do you want your steak cooked? That was it. The menu was, we cook eight ounce, flat iron steaks. That was it. That was the whole menu choice.
Jason: You can have it with fries, or you can have it with this.
John: You sit down, they give you the menu, you look and you think, “I’ll have the steak, then.”
Jason: Good choice, sir.
John: Yeah. Obviously, you can have it cooked how you like and then there’s a choice of salad, or fries with it, or you can have this dip, or you can that sauce. There was a choice of sides, but essentially, how are they going to go wrong? As long as they’re able to cook a steak and they source decent meat, they shouldn’t go wrong with that.
Jason: I know. We found it with a couple of the first franchisees, with Ray Kroc, really. His country club mates, who went, yeah, here’s the money. Let’s do it, sort of thing. They kind of went, actually, they increased the menu. They thought, we’ll do fried chicken and we’ll do corn on the cob and we’ll do this, that and the other.
John: People love fired chicken.
Jason: Yeah. He kind of went, he said, “No. We don’t do fried chicken. We do burgers and if they want fried chicken take themselves down the road and go to the fried chicken shack. We do burgers.” They couldn’t get it at that point, because that’s not what drive-ins were all about. They were all about people driving up and being served. As you say, they were disruptive, the McDonald brothers, because they kind of, took the rules and threw them out the window, which took the Americans a few, a little while to get it. There’s no plates. There’s no cutlery. There’s no where to sit. It’s not eating in. There’s no tray for your window, when you get served. There’s no hoppers, driving the food out to you. The food was right and on time and that’s all there was to it, really.
John: I mean … Yeah. The difference between a good business and a good product. What was more important to Ray Kroc, making a good burger, or making money? Ask that same question, to the original McDonald’s brothers, which was more important, making a good burger, or making good money? I think you’d get two different answers there.
Jason: I think, latterly you certainly would, maybe not at the beginning, because he realised that, actually, without the good burgers he wouldn’t have the good customers, he wouldn’t have the money, but I think that kind of flipped on its head when he came into real estate and it was actually not so much about the burgers, because that’s not where his dollars were coming from. Then, that’s where their ethos was, or their desires was aligned in the beginning and it kind of, drifted apart.
John: Then, did he go a little too far, in that to hell with the burgers? Yeah, I think, Dick says at one point, “What do you want me to do next? Sawdust in the burgers?” There is a line, which I think, probably next year Michael Keaton might win the Oscar for, or he might be unintentionally announced as the Oscar winner anyway, where he bites into this McDonald’s burger, for the first time and he delivers this line, straight to camera, with a serious look on his face and he says, “This might be the best burger I’ve ever tasted.” Can you imagine, biting into a McDonald’s burger and saying, “That’s the best burger I’ve ever tasted.”?
McDonald’s, by their own admission, do not make the best burgers. Most people can make a better burger than McDonald’s can, but most people can’t build a better business then McDonald’s can. It’s that consistency and continuity of the product, of the brand that I can go into a McDonald’s … I would not … but I could go into McDonald’s, here in Plymouth and I could get the same meal that I could get in Times Square, or outside the Louvre, Paris. It’s exactly the same meal, across the world, across their … however many branches it is, 36,000 restaurants worldwide.
Jason: Unless you’re in Europe and you can have a beer.
John: Yeah. Royale with cheese. No. That’s not McDonald’s.
Jason: The one thing that I think was really good and I took from his performance, or at least Ray Kroc himself really was, he’s a great story teller. Even from selling the milk machine kind of, thing … milkshake machine, sorry. He was telling a story. He was painting a picture to them. The supply and demand story that went with that, but he also had to sell his vision, or his idea to the McDonald brothers as well and he kind of done that with a story about, you’re not doing it for yourself, do it for your country.
It’s kind of, like, look at American towns. American towns have two things. They have a church, which has a cross on top and they have a court house with a flag and that’s the two things. You’ve kind of, got the bad people and you’ve got the good people, but you’ve got nowhere for families to congregate. That’s what I think about these golden arches, I’d like to see one in every kind of town and he painted this lovely picture, that actually, this is something really good and this is something really good for the community and this is something for the families to get behind. It’s open every day, not just on a Sunday. Somewhere for the families to go and that kind of piqued the inters of the two brothers, really. It’s like, actually, we could give him a go with it, really.
Again, it was that telling of the story and I thought, actually, you’re playing on people. What they want and what their desires and what their thoughts are and their values and he was really good at that.
John: Again, he wasn’t selling burgers. He was selling the American family. That branding, of the arches, coupled with the church and a flag, one in every town, just resonated with people so much that people bought into that brand, because, all right, yeah. The food was probably okay. It wasn’t terrible, then and they were happy with that.
The biggest lesson though, that I think I took out of this film, was that in a two hour movie not once do you see Ray Kroc flipping a burger. You never see him serving a customer. You never see him sweeping the floor. Ray Kroc understood the importance of working on the business, not in the business. He was not the doer, liken that to the McDonald’s brothers, who we’re first introduced to them when they’re sweeping the floors.
Jason: [inaudible 00:27:14], yeah, yeah.
John: There’s a story about their first few customers and they’re serving in the hatch, in the window serving customers, or they’re in the back with an apron on flipping burgers, or cutting chips up, or prepping buns, or they’re the ones that are ordering the potatoes. They’re the ones that are doing everything and that is why they had a small, one diner business that, in answer to the question I said at the beginning, which is, was Ray Kroc the founder of McDonald’s? I believe we would not even be aware of McDonald’s, if it were not for Ray Kroc, because McDonald’s would have been a small town burger joint, left in the hands of the McDonald’s brothers. That’s my …
Jason: Yeah. We had that conversation, when we came out, didn’t we? About Ray Kroc and he kind of, screwed the McDonald brothers over, we thought kind of, really. It was actually a little bit unfair, because he kind of sold it for a million, 1.7 million dollars each, wasn’t it? That was a million dollars and tax free kind of thing, yeah, but it was for the tax. He was going to give them a one percent over ride, or something like that, wasn’t he? But, he had to agree, as a gentleman’s agreement … which, apparently they never got anything from that … but, actually a million dollars each, kind of, cash in their hand really, for their idea, whilst it’s turned into McDonald’s Corporation worldwide, that would never …
As you said afterwards, I thought, “That was a bit tight, really, wasn’t it?” You said, “Is it? Because, their idea was, was it really worth more then two million pounds, or three million pounds with the tax?”
John: I think they got a cracking deal. If you’d said to them, if Ray Kroc had gone in there and said, “Right. You run this business as you see fit, but I want to take your name and your ideas and I’m going to pay you a million dollars each.” They would have bitten his hand off. The problem was he turned it into a huge corporation, which was worth considerably more, but he did that work. Let’s say, all right, they potentially should have had a better deal, but did they get a good deal? I think they got a fantastic deal. As I say, we would not be aware of McDonald’s, if it wasn’t for Ray Kroc, because they would still be this tiny, little burger joint, which is what they wanted.
Jason: Yeah. Yeah. They were comfortable, weren’t they? They were in their comfort zone and they’d got it finely honed, albeit that they were fine in their comfort zone.
John: Yeah. As I say, that was, certainly my big lesson was you do not see Ray Kroc flipping a burger. If you’re currently flipping the burgers in your business, then you need to make sure that you’ve seen the film and you need to be a little bit more Ray Kroc. Maybe, not screw over your business partners, put sawdust in your burgers and powder in your milkshakes.
Jason: They did go back to it. They did add powder, didn’t they? But, they did go back to ice cream in their milkshakes, not very long after.
John: Apparently so. Apparently so. I’ve not eat in a McDonald’s for 10 years, or more now.
Jason: That very good of you.
John: I’m going to keep that up. Right. Leaving my personal opinion on McDonald’s aside, that’s it for another week, guys. We hope you’ve enjoyed this little film review. We will be back to normality next week, with another normal podcast, but yeah. I hope you found that useful. As I say, we’re not going to do film reviews every week, but there were a lot of business lessons to be pulled out of that one.
Yeah. We’re back with another episode of the Big Idea podcast, next week. As always, if you’ve got any comments and you want to keep this conversation going hop along to the Facebook group, which is bigidea.co.uk/podcast and we’ll keep the conversation going in there. Show notes, all on the website, aren’t they?
Jason: They are indeed, yeah. That’s on the podcast link, that you just gave, whereas the Facebook link would have been bigidea.co.uk/facebook, but if you want to see the show notes it’s /podcast.
John: I’m just making sure that people go to both of our [crosstalk 00:31:23].
Jason: Go and have a look. If you want to see the video, it’s on YouTube, but all the links and stuff are all on our website, bigidea.co.uk/podcast.
John: Fantastic. Before we go away, because I nearly forgot, do you have a tool of the week for us, this week?
Jason: Tool of the week, this week comes from one of our people that we work with, actually. She came up with this fantastic tool called CamCard, Card Cam. I’ve got to remember the name now, haven’t I?
John: Don’t get it mixed up, whatever you do, because you don’t want anybody pointing that out to you, that you’ve just made a mistake.
Jason: I just made a mistake. Yeah, I did, didn’t I? That’s true, yeah, yeah. A great tool, just take … Snap a picture, of the business card-
John: What’s it called, again?
Jason: Good question [inaudible 00:32:01]. CamCard, I’m going with. It syncs across all your platforms, if you want to do that, but what I like about it is that you can take a photograph of the card. It reads the card and puts it in as a contact on your phone. She sold me the idea of, it also picks up your LinkedIn and things, but I think that might be an iPhone only, app type thing that you can do. It doesn’t work on my Android.
John: [crosstalk 00:32:23].
Jason: But, I like the idea it just … you can snap it. We’re into our networking now and we’re picking up lots of cards, so it’s really good to put them straight into your phone and they’re there and you can’t lose them and … yeah. Good. Thank you, Joey, for that one.
John: Yeah. Thank you Jo.
Jason: Is that all right with you?
John: Yeah. That’s all good with me. As long as you got it right, as long as you got the name right.
Jason: I’m sure it is. It’ll be in the show notes, anyway, so even if it’s not go and have a look in there.
John: Show notes, which are at /podcast, bigidea.co.uk/podcast. Cool. On that very highly successful note, guys, we will see you next week for another episode. Bye bye.
Jason: Have a good week.
Some more Big ideas
Hula Hooping for self confidence!
Introducing the O’Shitometer
#ALB37 How Neville Wright turned 37p and his Dad’s ladder into a £100 million empire
#ALB49 ThreeSixty Mortgages podcast
How Jon Monks doubled his sales whilst working half as hard
“John and Jason have been there and done it and don’t have an ego about it like many others.
I know I am better organised, better planned and prepared and more likely to succeed sooner, thanks to their wisdom and experience.”
Could you DOUBLE your business 1% at a time?
Could you grow your business by just 1% this week? That doesn’t sound too hard, does it? Well, if you could grow your business by just 1% every week, after 69 weeks, you’d have DOUBLED your business!
These 1% gains are the same techniques used by the British Cycling Team that helped them turn a bunch of “also-rans” into world beaters, notching up forty-two medals in the last four Olympics, as well as winning six of the last seven Tour De France races.
The One Percent Club will show you EXACTLY how to implement these 1% gains into your business, and how they can stack up to REALLY grow your business.
John released his first book “Big Ideas… for Small Businesses” in 2017, and it shot straight to the #1 bestseller list for Small Business and Entrepreneurship on Amazon, outselling books by Richard Branson, Alan Sugar and Duncan Bannatyne combined.
Since then, it’s sold thousands and thousands of copies all over the world, and attracted more than 100 five-star reviews. But more importantly, it’s changed the lives of small business owners all over the world, who now understand that running a lifestyle business isn’t a bad thing.
I think you’ll like it…
Join our 1200 strong Facebook Community with advice from like-minded business owners
PO Box 74,
Plymouth, PL7 1ZN